A J-31 stealth fighter of the People's Liberation Army in the middle of its test run in Guangdong Province. (Photo : Reuters)
Aviation Industry Corp. of China (AVIC), the country's biggest aerospace company, has joined bidding for the acquisition of the U.S. car parts manufacturer Henniges, Bloomberg reported on Thursday quoting industry insiders.
AVIC, a state-owned firm based in Beijing, is willing to pay approximately $1 billion for Henniges, according to the insiders who refused to be named, and mentioned that "other Asian companies" are also interested in purchasing Henniges.
If successful, the deal could follow the company's 2011 purchase of a controlling stake in Nexteer Automotive Group, a steering and driveline maker and former subsidiary of General Motors.
Located in the Detroit suburb of Auburn Hills, Henniges specializes in rubber components, seals, and anti-vibration systems used in vehicles manufactured by Ford Motors, Audi AG and Honda, according to the company website.
The company, which was founded in 1951 and has more than 6,500 employees worldwide, has been owned since 2010 by Littlejohn & Co., a private equity firm in Greenwich, Connecticut.
The company also said in February the previous year that it has acquired full control over its joint venture in China and announced plans for further improving sales in the country as well as in other emerging markets.
The Chinese unit, Wanyuan-Henniges, has been supplying products for Shanghai Volkswagen Automotive Co., the local venture of the German automobile giant Volkswagen; General Motors; and FAW Car Co., a subsidiary of the state-owned FAW Group, the country's oldest automaker.
AVIC media affairs representatives were unavailable to comment. A spokesman for Littlejohn also refused to answer questions by reporters regarding the deal.
